Great Credit Improvement Tips From Experienced People
Posted at by CreditWiz on category CreditDo you hate your life because your credit sucks? Millions of adults have experienced a severe drop in their credit score. You can make your credit score better by following the tips in this article.
Getting a traditional home loan can be difficult, if not impossible, with imperfect credit. If this is the case, you can apply for a loan through the Federal Housing Administration (FHA). The credit requirements for these loans are more lenient than those of conventional lenders, and the federal government also guarantees the loans. FHA loans are a good option regardless of your down payment amount or funds available for closing costs.
Pay down any credit cards with a balance in excess of 50%, preferably getting them down to 30%. Carrying a balance of more than half your credit limit negatively impacts your credit score. Either pay this balance down or spread it out over multiple cards.
Interest Rate
It’s easy to lower your interest rate by ensuring your credit score is high. This will make your payments easier and it will enable you to repay your debt a lot quicker. Compare offers and choose the best interest rate you can find when borrowing money or subscribing to a credit card.
For a credit score boost, an installment account will help. All installment accounts must stay above the set monthly minimum, so only open one if you can afford it. If you use one of these types of accounts, your score will quickly improve.
Interest Rates
Excessive interest rates can be contested. However, it is best not to sign contracts containing them in the first place. The incredibly high interest rates can get challenged and reduced in some situations. However, you signed a contract agreeing to pay off interests. If you go ahead and sue your creditors, ask that they consider the high rate of interest.
One of the first steps of improving your credit score is ensuring that your bills are always paid. More importantly, you need to start paying your bills in full and on time. Your credit rating will quickly rise as you settle up your overdue bills.
When trying to repair your credit, research any credit counselors you consider using very thoroughly. While there are lots of counselors with your best interest at heart, there are others who just want your money. Others are just plain fraudulent. Consumers should always check to see if a credit counselor is not a scam before deciding to use them.
Contact the credit card company and ask to get your card limit lowered. This helps you from overspending and shows that you want to borrow responsibly and it will help you get credit easier in the future.
You should look at your credit card bill every month to make sure it is correct. Should there be any mistakes, contact the company and talk to them to avoid being reported to the credit companies.
Do not file for bankruptcy. Bankruptcy does not drop from your credit report until ten years have passed, so you will deal with the fallout for a significant period of time. Bankruptcy may sound great because your debt goes away but there are consequences. Though it may provide some immediate relief, be aware of how it will impact your access to credit in future years.
Credit Score
If you have felt badly about your poor credit score for a while, use these tips to change your score and change your life. Using this advice, you can prevent your credit score from falling further, and you can begin to improve it.